Martin Capital Partners LLC Acquires 10,839 Shares of CME Group Inc. $CME

Key Points

• Martin Capital Partners increased its CME Group stake by 27% in the third quarter, purchasing 10,839 shares for a total holding of 50,960 shares valued at approximately $13.35 million. Institutional investors and hedge funds collectively own 87.75% of the company.
• Analyst sentiment remains mixed: CME has an average “Hold” rating and a consensus price target of $291.62, with recent targets ranging from $250 to $305.
• CME exceeded quarterly earnings expectations, reporting $2.99 in EPS and $1.71 billion in revenue, while maintaining a quarterly dividend of $1.30, equivalent to a 1.9% annualized yield.

Martin Capital Partners LLC increased its holdings in CME Group Inc. (NASDAQ:CME - Free Report) by 27.0% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 50,960 shares of the financial services provider's stock after purchasing an additional 10,839 shares during the period. CME Group accounts for 4.1% of Martin Capital Partners LLC's investment portfolio, making the stock its 2nd biggest position. Martin Capital Partners LLC's holdings in CME Group were worth $13,351,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Bridgewater Advisors Inc. acquired a new stake in shares of CME Group in the second quarter worth approximately $612,000. The Manufacturers Life Insurance Company acquired a new position in CME Group during the second quarter worth approximately $53,671,000. Haverford Trust Co acquired a new position in CME Group during the second quarter worth approximately $13,818,000. Bowie Capital Management LLC purchased a new position in CME Group during the second quarter worth approximately $22,991,000. Finally, GSA Capital Partners LLP purchased a new position in CME Group during the second quarter worth approximately $2,807,000. 87.75% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have recently issued reports on CME shares. Deutsche Bank Aktiengesellschaft cut shares of CME Group from a "buy" rating to a "hold" rating and lowered their price objective for the company from $286.00 to $270.00 in a research note on Wednesday, August 19th. JPMorgan Chase & Co. increased their target price on CME Group from $249.00 to $250.00 and gave the stock an "underweight" rating in a research report on Thursday, July 23rd. Wells Fargo & Company assumed coverage on CME Group in a research report on Friday, October 2nd. They issued an "overweight" rating and a $301.00 target price on the stock. Keefe, Bruyette & Woods upgraded CME Group from a "market perform" rating to an "outperform" rating and set a $305.00 target price on the stock in a report on Thursday, June 18th. Finally, Wall Street Zen raised CME Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, October 3rd. Eight research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, CME Group presently has an average rating of "Hold" and a consensus price target of $291.62.

Insider Buying and Selling at CME Group

In other news, Director Elizabeth A. Cook sold 500 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $280.11, for a total value of $140,055.00. Following the completion of the sale, the director owned 17,916 shares of the company's stock, valued at $5,018,450.76. This represents a 2.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William R. Shepard bought 293 shares of the stock in a transaction dated Friday, September 25th. The stock was bought at an average price of $268.76 per share, with a total value of $78,746.68. Following the purchase, the director owned 263,289 shares of the company's stock, valued at approximately $70,761,551.64. This represents a 0.11% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.30% of the stock is currently owned by corporate insiders.

Key Headlines Impacting CME Group

Here are the key news stories impacting CME Group this week:

• Positive Sentiment: Wells Fargo initiated coverage with an Overweight rating, adding a new bullish institutional view on CME’s exchange business and prospects. Wells Fargo initiates coverage of CME Group with overweight rating
• Positive Sentiment: Record French government debt and widening bond yields could increase demand for interest-rate and bond derivatives. That environment may lift trading volumes at CME and other U.S. market operators as investors hedge risk. Record French Debt Could Create Opportunities for US Market Operators
• Positive Sentiment: CME remains favorably positioned relative to Intercontinental Exchange. An investor comparison highlights CME’s roughly 22-times earnings valuation and approximately 4.3% dividend yield, which could support its appeal to income-oriented investors. CME Group versus Intercontinental Exchange
• Neutral Sentiment: Gold prices declined as the U.S. dollar strengthened ahead of Federal Reserve meeting minutes. CME benefits from activity across metals, rates and other futures, but the immediate effect on revenue is unclear. Gold Prices Dip as US Dollar Gains Ahead of Fed Policy Minutes
• Negative Sentiment: CME suspended plans to launch a 24/7, 10-barrel crude-oil futures contract after resistance from regulators and major industry hedgers. The decision removes a potential new product and revenue opportunity, although it may prevent implementation and liquidity risks. CME Group’s Plan for 24/7 Oil Trading Scrapped
• Negative Sentiment: Kalshi has asked the CFTC to approve a non-expiring WTI crude-oil futures contract that would trade around the clock. If approved, the product could compete with CME in a strategically important derivatives market. Kalshi Wants Non-Expiring WTI Futures Approval

CME Group Price Performance

CME opened at $270.27 on Thursday. CME Group Inc. has a 52-week low of $218.31 and a 52-week high of $329.16. The company has a 50 day moving average of $271.63 and a two-hundred day moving average of $271.41. The company has a market cap of $97.18 billion, a P/E ratio of 22.92, a P/E/G ratio of 3.54 and a beta of 0.24. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13.

CME Group (NASDAQ:CME - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 EPS for the quarter, beating analysts' consensus estimates of $2.91 by $0.08. The business had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.68 billion. CME Group had a net margin of 63.30% and a return on equity of 15.60%. The business's revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.96 EPS. On average, analysts expect that CME Group Inc. will post 12.28 earnings per share for the current year.

CME Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Wednesday, September 9th were issued a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 1.9%. The ex-dividend date was Wednesday, September 9th. CME Group's dividend payout ratio is currently 44.11%.

About CME Group

CME Group Inc operates global derivatives marketplaces that enable customers to manage risk and trade futures and options contracts. Its exchanges offer products linked to interest rates, equity indexes, foreign currencies, agricultural commodities, energy, metals and other asset classes.

The company also provides central counterparty clearing, settlement and related risk-management services for transactions conducted on its markets. In addition, CME Group offers market data, benchmark products and technology services that support trading, analysis and connectivity for financial institutions, businesses, professional traders and other market participants.

CME Group's history includes the Chicago Board of Trade, founded in 1848, and the Chicago Mercantile Exchange, established in 1898.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.